Less Colones Needed To
Buy Dollars
The move by the Banco
Central de Costa Rica (BCCR)
- Central Bank - to
change the low and high
bands of the exchange
rate meant an instant
pay raise for salaried
employees earning in
colones. Salaried
employees earning in
dollars, however, got a
pay drop.
The exchange rate when
banks opened yesterday
morning saw the buy rate
open at ¢498, down from
¢516 the night before
and the sell rate posted
at ¢505 down from ¢521.
Although the Central
Bank announced the
sell rate ceiling at ¢562, both state
and private banks posted
a ¢505 exchange rate.
The change also affects
foreigners living and
working in Costa Rica
who earn or receiving
their pensions in
dollars.
The result it that when
taking their dollars to
the bank for exchange
they will walk away will
less colones or need
more dollars to buy
colones.
Wednesday a us$100 bill
could be exchanged, on
average, for ¢52.000
colones. Yesterday
morning, the same us$100
bill was worth only
¢49.800 colones. The
exact amount of exchange
depended on the bank
used for the exchange.
The banks as well
scurried to find a level
for the exchange. For
instance, the Banco de
Costa Rica in the early
morning hours set the
buy at ¢497 and sell at
¢521 on their websites,
but by opening hours the
rate had levelled to
¢497 and ¢505
respectively.
The same occurred at
other banks, like
Scotiabank and BAC, two
of the largest private
banks. The Banco
Nacional de Costa Rica
waited until opening
hours to announce their
exchange rate.
Tourists will also be
affected by the change
as their dollars are
worth less, some ¢2.000
colones on average less
than on Wednesday. The
winners in the change
are those were holding
on to lots of colones,
as they needed fewer to
buy dollars.
The reasons behind the
change, according to
Central Bank officials,
is the weak US dollar
around the world and the
Central Bank incurring
losses to continue to
shore up the Colon.
Francisco de Paula
Gutiérrez, president of
the Central Bank, said
yesterday that it is
still too early to say
if the rate will stay
the same as it is today
or change. Gutiérrez
added that the rate will
be determined "forces of
the market". |
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